‘Bad way to be treated’: California couple got dropped by their home insurer after pictures from space detected roof damage — but they claim it was just their solar panels

Insurers increasingly use tech to assess risk

The Colemans' story is one of many recent cases where homeowners feel unfairly targeted by insurers relying on advanced technology, like drones and satellite imagery, to assess risk. This practice is especially common in disaster-prone states like California, Texas and Florida. While these tools allow insurance companies to evaluate properties remotely, they can lead to errors, as the Colemans' situation shows.

According to Karl Susman, an insurance broker with over 30 years of experience, the increased use of aerial imagery is tied to insurers' bottom line.

“They’re effectively losing money,” Susman told CBS News, adding that companies are looking for any reason to drop policies to reduce their financial risk. And, it's perfectly legal.

California Insurance Code Section 676 requires insurers to provide a specific reason for non-renewal at least 75 days before the policy expires, allowing homeowners time to address issues or find new coverage. Using aerial photography helps companies justify the reasons for cancellation while keeping them on the right side of the law.

Despite hiring a roofer to confirm the roof was fine, Liberty Mutual refused to reverse its decision, raising concerns about whether the insurer is using these tools, like aerial imagery and AI, fairly.

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What to do after a non-renewal notice

If you receive a non-renewal notice, it's important to know your rights and options. In 2018, California passed a mandatory one-year moratorium on non-renewals for residential insurance policies. If your area qualifies, your insurance company cannot drop your coverage. If you believe your insurance provider isn’t following the law, you can submit a consumer complaint to the California Department of Insurance.

To reduce insurance costs, you can take steps like removing vegetation around your home, installing a home sprinkler system or upgrading to a Class A fire-related roof. Increasing your deductible or bundling your home and car insurance policies can also lower premiums. Local insurers may also offer better rates, as they often have a more detailed understanding of regional risks.

If you can’t find coverage through traditional brokers, you can apply for insurance through the California FAIR Plan, a state-mandated program providing basic fire and property insurance for high-risk areas.